The Voluntary Switching Factors to Switch Public Accounting Firms: A Case Study in Indonesia
Keywords:
Internal Control, Accounts Receivable, Financial Reporting, Fraud Prevention, Operational Efficiency.Abstract
This study investigates the voluntary factors that influence Indonesian companies in their decision to switch public accounting firms (PAFs). The demand for auditing services has played a significant role in the growth of the public accounting profession in Indonesia. The rising number of public accounting firms has led to increased competition among them. Under these circumstances, companies may decide to switch their auditors. Utilizing a qualitative case study approach, the research explores motivations behind auditor changes beyond regulatory mandates. Key factors identified include audit fees, auditor expertise, independence, client-auditor relationship quality, firm reputation, and alignment with business strategy. Findings provide valuable insights for both accounting firms and corporate clients in Indonesia, aiming to enhance audit service quality and strengthen professional relationships. In summary, the literature shows a wide range of influencing factors including financial distress, management turnover, audit opinion, auditor reputation, and audit fees. However, these findings are not entirely consistent, suggesting the need for a contextual and sector-based understanding. Regulatory, cultural, and relational dynamics in Indonesia add further complexity to these decisions, reinforcing the need for ongoing research.
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